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Removal of Chinese quotas in US may affect exports in 2009
02 Feb '09
2 min read
Although Vietnam textile and garment industry maintained its growth in 2008 and remained in the top ten league amongst textile and garment exporting countries worldwide, it expects to cope with much more challenges in 2009.
Because of the global economic meltdown, the economy of key importing countries of Vietnam's textile and garment products is expected to decrease in 2009, leading to a fall of 10 percent in off take from the sector, especially of high end products.
Mr. Le Tien Truong, Deputy Director of Vinatex had this to say. “Vietnam's textile and garment exports will face difficulty in general because of economic downturn in its key markets like US, Japan and country members of EU”.
He added by saying, “In 2008, Vietnam has managed to become the second biggest exporter to the US, just behind China but considerably surpassing Indonesia and Mexico. Shipments to the markets of the EU also indicate a good growth chart”.
He continued by saying, “However, in 2009 there will be more difficulties in these very markets. The removal of quotas on imports of textile and garment products from China by US, may greatly affect the country's potential to a great extent. Bangladesh is also emerging as a potential threat”.
Mr Truong was of the opinion that, those companies in to manufacturing of high end products should concentrate on the domestic markets as well as expand in to newer global markets to survive through this Tsunami like crisis.
The country has revised the preset targets for the sector for 2009, and reset it for a modest growth of 5-7 percent taking in to account the challenging global economic conditions in the global markets in the current year.
Because of the global economic meltdown, the economy of key importing countries of Vietnam's textile and garment products is expected to decrease in 2009, leading to a fall of 10 percent in off take from the sector, especially of high end products.
Mr. Le Tien Truong, Deputy Director of Vinatex had this to say. “Vietnam's textile and garment exports will face difficulty in general because of economic downturn in its key markets like US, Japan and country members of EU”.
He added by saying, “In 2008, Vietnam has managed to become the second biggest exporter to the US, just behind China but considerably surpassing Indonesia and Mexico. Shipments to the markets of the EU also indicate a good growth chart”.
He continued by saying, “However, in 2009 there will be more difficulties in these very markets. The removal of quotas on imports of textile and garment products from China by US, may greatly affect the country's potential to a great extent. Bangladesh is also emerging as a potential threat”.
Mr Truong was of the opinion that, those companies in to manufacturing of high end products should concentrate on the domestic markets as well as expand in to newer global markets to survive through this Tsunami like crisis.
The country has revised the preset targets for the sector for 2009, and reset it for a modest growth of 5-7 percent taking in to account the challenging global economic conditions in the global markets in the current year.
Fibre2fashion News Desk - Vietnam
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